Karl an employee of Smith Electric Inc has gross salary for

Karl, an employee of Smith Electric, Inc, has gross salary for March of $4,000. The entire amount is under the OASD 18%. Karl has a deduction of $320 for health insurance and $80 for United Way Tax of 62% and FICA-Medicare Tax of 1.45%.) Provide the journal entry to record salaries expense and payroll withholdings. I limit of $117,000 and thus subject to FICA. He is also subject to federal income tax at a rate of . Assume a FICA-OASDI

Solution

Journal entry to record salaries and payroll withholding: Accounts title and explanations Debit $ Credit $ Salaries and wages expense Account Dr. 4000      FICA-OASDI tax payable (4000*6.2%) 248      FICA-Medicare tax payable (4000*1.45%) 58      Federal Income tax payable (4000*18%) 720      Health insurance payable 320      United way 80      Salaries and wages payable 2574